I see that over on Stockopedia* someone writing anonymously as a bull of Quindell (QPP) has slammed those who post anonymously suggestions that kit is a sell. Whatever… Mr Steamy001 (perhaps that is his real name?) also describes me as “one of Quindell most vocal detractors.” Hmmmm - I ask questions and perhaps that is viewed as a bad thing in some circles? But would I short the shares now, at 21p?
At 30p or 40p the valuation seemed to me insane. Even if one ignored all the red flags valuing a stock that had just reported free cashflow generation of c£5 million at £2 billion or £3 billion just seemed bonkers. My good pal Mark Slater who had bought in at 7p was selling at these levels purely on the basis of valuation. I make no apology for suggesting that such valuations were crackers. I was right. They allowed no margin for error or uncertainty
I know that on the Bulletin Boards the idea of selling Quindell at any price filled some folks with horror, it was viewed as being akin to eating your own babies or chucking live fluffy puppies into an incinerator. But all stocks are ultimately for selling if they get ahead of themselves.
At 21p this is a much harder call. There are to me three possible scenarios here:
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